MRPL to partner with ISPRL to use cavern storage facility for crude oil

Leasing ISPRL's caverns eliminates the need for constructing and maintaining standalone storage facilities, significantly reducing costs, Mundkur Shyamprasad Kamath of MRPL said.

Mangaluru: The Mangalore Refinery and Petrochemicals Limited (MRPL) has entered a strategic partnership with Indian Strategic Petroleum Reserves Limited (ISPRL). The partnership enables MRPL to leverage storage capacity from ISPRL's caverns, marking a significant milestone for both organisations.

The agreement was formally signed at the MRPL office in Mangaluru by B Sudharshan, Executive Director (Refinery), and Atul Gupta, Deputy CEO (ISPRL), in the presence of Mundkur Shyamprasad Kamath, MD (MRPL), and L R Jain, CEO and MD (ISPRL). The collaboration underscores a shared vision to drive mutual growth and contribute to national energy security.

Speaking on the occasion, Mundkur Shyamprasad Kamath highlighted that the agreement would enable MRPL to enhance its crude oil storage capacity, thereby mitigating risks associated with the volatility of global crude oil markets.

"Leasing ISPRL's caverns eliminates the need for constructing and maintaining standalone storage facilities, significantly reducing costs. The proximity of ISPRL caverns to MRPL's refinery and the coast minimises transportation costs and transit times. It will also enhanced supply security and the partnership will ensure uninterrupted access to crude oil, even during global supply chain disruptions," he said.

"Storing diverse grades of crude oil as per MRPL's requirements provides operational adaptability. By opting for leased storage, MRPL can allocate capital to other critical areas of its operations, driving overall efficiency and growth. With the strategic advantage, MRPL is poised to leverage the added storage capacity to procure economically viable and complex crude grades, boosting its bottom line while ensuring energy resilience," he added.